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Such a arugment is based on our ability to performed simulations and the universe being subjected to the language of mathematics with a component of time, thus simulations leading to future predictions. Thus it is conceivable to simulated the entire universe given adequate resources, thus leading to the conjecture that reality itself is a simulation. A matrix so to speak

There is some interesting mathematical work being done with applying information theory to quantum mechanical system and thence to cosmology. Or, more properly, the mathematics of information theory seems to show up in places in the real universe where one would not expect it to. Indeed, quantum wave-particle duality and the Uncertainty Principle can both be explained by a physical system containing only a limited amount of information. Essentially, we hit the limit of the number of pixels or the memory availability in the simulation.

Put another way, if we were living in a simulation, we would come to recognize that our universe worked by relatively simple mathematical laws and was subject to information theory limits, and that indeed seems to be the case. Flabbergasting, or at least amusing.

As an aside, this would also easily solve @Simon's objection to virgin birth and the resurrection. ;-) A merry thought indeed on this Yuletide.

Quantum information of the interior of a black hole appears on the 2D surface of the event horizon. The mathematics of a qubit error correcting algorithm appears to govern information stored on the event horizon. This jaw dropping. Why should reality be so. Read the entangled space time article in the Scientific American (latest).

Yes information theory has also surfaced on the event horizon of black holes. ( No pun intended). That gets us into the holographic universe. The implications are indeed mind bending and matrix friendly.

The simulator is just a device. It's the programmer who's the jerk. ;-)

Or not. The real world is remarkably more benign than any online multiplayer game developed by humans, as far as I know.

It's funny to me that in our matrix reality, children get emotionally and physically injured and occasionally killed playing sports (or riding bicycles, or...) And yet, loving parents who care deeply about their kids allow and even encourage them to play sports, and the kids often enough seem to love it and grow from it.